Lynas progressing REE facility as global demand increases

Lynas Rare Earths Limited (ASX:LYC) is targeting a July 2023 operation commencement for its Kalgoorlie based rare earths processing facility, the flagship asset for LYC’s REE strategy within inner WA. 

The company has received all necessary approvals and has commenced the recruitment process for operational staff to attend the facility when operations begin halfway through next year. 

The facility is being progressed with the help of a $14.8m grant from the Australian Government, with the Kalgoorlie facility ultimately set to push Australian-made EV battery components into the domestic and foreign market. 

Map showing the location of projects owned by Lynas

Strong ESG focus  

Lynas has devised a new efficiency plan for the extraction mine at Mt Weld to reduce energy demand by some 19%, which the company expects to equal a reduction in the greenhouse gas emissions that would otherwise be produced by 515 cars’ annual GHG output. 

Further, the company has awarded a contract to an undisclosed player to integrate renewable energy onsite the Mt Weld mine to ultimately lessen dependence on diesel-fueled assets. 

The company has also devised a GHG strategy document for its mining operations. 

Company developing known rare earth resource 

In the background, the company continues to conduct drilling onsite its Mt Weld acreage to better define the ore body on-site as global demand for battery metals increases. 

The company notes rare earth supply chain security has become a priority for governments and industry around the world at the same time EV sales continue to increase both at home and overseas. 

Strong demand for rare earth metals is reflected in market pricing, Lynas notes, which most investors would recognise in price movements for lithium over the last twelve months. 

Lynas' charts over the last three months